PARIS: The French pharmaceutical giant Sanofi announced Monday, May 25, its intention to sell its stake in the American biotechnology company Regeneron, valued at around $ 13 billion.
Sanofi, which owns about 20.6% of Regeneron, however, insisted that it did not intend to end its partnership with the American firm.
The sale will see Regeneron’s $ 5 billion buyout of its shares in Sanofi, the French company said in a statement.
“Sanofi remains committed to continuing to work with Regeneron, which remains an integral part of our overall strategy, and this decision was perfectly aligned with Regeneron,” said Paul Hudson, chief executive officer of Sanofi.
He said the proceeds from the transaction would be used to further develop Sanofi.
“We believe the proceeds from this transaction will help us strengthen our ability to execute our strategy to drive innovation and growth,” he said.
According to Sanofi, the companies have had a long and successful clinical and commercial collaboration since 2003 “which has resulted in five approved treatments to date with additional candidates currently in clinical development”.
Hudson earlier this month caused a sensation by stating that the Americans would have priority over any coronavirus vaccine developed by Sanofi.
The company was quickly struck by the French government over the comments.